MainStreet Bancshares (MNSB) AI Stock Analysis

• Market Cap: $161.59M
• Dividend Yield: 1.91%
• Average Volume (3M): 31.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: 1.92%
• EPS Growth: -174.59%
• Country: US
• Employees: 182
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.52
• Shares Outstanding: 7,705,571
• 10 Day Avg. Volume: 21,887
• 30 Day Avg. Volume: 31,869
• PEG Ratio: 0.09
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 15.38
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: -161.41
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $21.00 ▲(0.00% Upside)

MainStreet Bancshares' overall stock score is driven by positive technical indicators and supportive corporate events, despite financial challenges. The company's commitment to dividends and stock repurchase programs provides some investor confidence, but profitability issues and negative revenue growth weigh on the overall score.

Positive Factors

Cash Flow Growth

Strong free cash flow growth indicates effective cash management and provides the company with flexibility for reinvestment and debt reduction.

Stock Repurchase Program

The stock repurchase program reflects management's confidence in the company's value and can enhance shareholder returns by reducing share count.

Dividend Commitment

Consistent dividend payments demonstrate a commitment to returning value to shareholders, which can attract income-focused investors.

Negative Factors

Declining Revenue Growth

A sharp decline in revenue growth suggests challenges in market conditions or competitive positioning, potentially impacting long-term profitability.

Negative Profitability Metrics

Negative profitability metrics indicate operational inefficiencies and could hinder the company's ability to invest in growth or weather economic downturns.

CFO Retirement

The retirement of a long-serving CFO may lead to transitional challenges and uncertainty in financial strategy execution, affecting investor confidence.

MainStreet Bancshares Business Overview & Revenue Model

Company Description

MainStreet Bancshares, Inc. operates as the bank holding company for MainStreet Bank that provides various banking products and services for individuals, small to medium-sized businesses, and professional service organizations. The company offers demand, NOW, money market, savings, and sweep accounts, as well as certificates of deposit; business and consumer checking, interest-bearing checking, business account analysis, and other depository services; and cash management, wire transfer, check imaging, remote deposit capture, and courier services. It also provides commercial loans, including government contract receivables, plant and equipment, general working capital, contract administration, and acquisition loans; commercial real estate, real estate construction, and residential real estate loans; and consumer loans comprising term loans and overdraft protection, as well as debit and credit cards. In addition, the company provides deposit insurance solutions; remote deposit of checks; and internet bill payment, online cash management, and online and mobile banking services. As of March 18, 2022, it operated six branches in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington D.C., as well as 55,000 automated teller machines. MainStreet Bancshares, Inc. was incorporated in 2003 and is headquartered in Fairfax, Virginia.

How the Company Makes Money

MainStreet Bancshares generates revenue primarily through interest income from loans and mortgages, which constitute a significant portion of its earnings. The company earns interest on various types of loans, including commercial loans, residential mortgages, and consumer loans, while also collecting fees associated with these services. Additionally, MNSB generates non-interest income through service fees for account maintenance, ATM transactions, and other banking services. The company may also benefit from partnerships with local businesses and organizations, enhancing its community presence and driving business growth. Furthermore, effective asset management and investment strategies contribute to its overall profitability.

MainStreet Bancshares Financial Statement Overview

Summary

MainStreet Bancshares faces significant financial challenges, with declining profitability and cash flow constraints overshadowing its revenue growth. The balance sheet remains relatively stable, but the negative return on equity and cash flow issues raise concerns about the company's ability to sustain operations and generate shareholder value in the long term.

Income Statement

MainStreet Bancshares has experienced a significant decline in profitability over the TTM period, with negative net profit and EBIT margins indicating operational challenges. Despite a strong revenue growth rate of 70.8% TTM, the company struggles with cost management, as evidenced by the negative EBIT and EBITDA margins. The gross profit margin has improved slightly compared to the previous year, but the overall profitability remains a concern.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.33 TTM, indicating a manageable level of leverage. However, the return on equity is negative, reflecting the company's inability to generate returns for shareholders. The equity ratio remains stable, suggesting a solid capital structure, but the declining ROE is a concern for future profitability.

Cash Flow

Cash flow analysis reveals a challenging situation with a decline in free cash flow growth by 26.2% TTM. The operating cash flow to net income ratio is low, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is below 1, further highlighting cash flow constraints. These factors suggest potential liquidity issues that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	138.62M	137.87M	127.76M	88.68M	70.31M	69.52M
Gross Profit	69.22M	59.06M	78.44M	72.91M	60.82M	49.82M
EBITDA	-1.38M	-9.27M	35.57M	35.97M	30.32M	21.70M
Net Income	-4.61M	-9.98M	26.59M	26.67M	22.17M	15.72M
Balance Sheet
Total Assets	2.12B	2.23B	2.04B	1.93B	1.65B	1.64B
Cash, Cash Equivalents and Short-Term Investments	26.65M	48.92M	113.51M	111.56M	161.74M	223.35M
Total Debt	69.84M	73.04M	87.64M	172.25M	29.29M	14.83M
Total Liabilities	1.91B	2.02B	1.81B	1.73B	1.46B	1.48B
Stockholders Equity	218.36M	207.99M	221.52M	198.28M	188.79M	167.66M
Cash Flow
Free Cash Flow	8.98M	8.95M	25.63M	25.76M	24.82M	15.73M
Operating Cash Flow	13.69M	14.74M	31.63M	33.54M	29.12M	17.02M
Investing Cash Flow	-26.77M	-122.28M	-130.75M	-228.74M	-29.25M	-313.79M
Financing Cash Flow	-91.74M	200.73M	83.03M	232.59M	-14.20M	339.45M

MainStreet Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNSB, the sentiment is Positive. The current price of 21 is above the 20-day moving average (MA) of 20.55, above the 50-day MA of 19.34, and above the 200-day MA of 19.23, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 60.00 is Neutral, neither overbought nor oversold. The STOCH value of 47.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MNSB.

MainStreet Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LARK	75 Outperform	$171.46M	9.85	11.72%	3.01%	12.31%	39.46%
FCAP	72 Outperform	$206.73M	13.90	11.84%	1.96%	11.36%	25.07%
BVFL	72 Outperform	$165.88M	16.75	5.32%	―	4.86%	-8.20%
CZWI	69 Neutral	$175.90M	14.01	7.00%	1.98%	-2.16%	-9.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CFBK	67 Neutral	$167.92M	10.38	9.18%	1.16%	2.33%	22.43%
MNSB	59 Neutral	$161.59M	-23.22	-2.07%	1.91%	1.92%	-174.59%

MainStreet Bancshares Corporate Events

MainStreet Bancshares announces upcoming board director resignation

On December 15, 2025, MainStreet Bancshares, Inc. announced that director Ali Reza Manouchehri will resign from the boards of both the company and MainStreet Bank effective January 1, 2026, citing the increasing demands of his role as chief executive of Metrostar Systems LLC, which was recently sold to Veritas Capital. The company emphasized that Manouchehri’s departure is for personal reasons unrelated to any disagreements over operations, governance, or financial reporting, and indicated that after his resignation the board will shrink from eleven to ten members, signaling a modest governance change while he remains a long-standing customer and supporter of the bank.

MainStreet Bancshares CFO Retirement Announcement

MainStreet Bancshares, Inc. announced the planned retirement of its Chief Financial Officer, Thomas J. Chmelik, effective December 31, 2025. Following his retirement, Mr. Chmelik will continue to serve as a Senior Executive Vice President and Secretary until December 31, 2027, under a new employment agreement that includes a reduced salary and continued participation in employee benefit plans. The agreement also outlines conditions for severance payments in the event of a change of control and includes non-competition and confidentiality covenants. Mr. Chmelik will maintain a significant portion of his investment in the company’s stock until his retirement.

MainStreet Bancshares CFO Thomas Chmelik Announces Retirement

On November 20, 2025, Thomas J. Chmelik announced his retirement as CFO of MainStreet Bancshares, effective December 31, 2025. He will continue as Senior Executive Vice President and Secretary until December 2027 and remain on the Board of Directors. Chmelik plans to divest up to 25% of his shares by 2027 for retirement purposes. His transition is amicable, with no disagreements with the company. Alex Vari, the current Bank CFO, will assume the role of Company CFO, continuing the high standards set by Chmelik.

MainStreet Bancshares Declares Dividend for Preferred Stock

On November 21, 2025, MainStreet Bancshares, Inc. announced a quarterly cash dividend for its 7.50% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock. The dividend, amounting to approximately $0.47 per Depositary Share, is payable on December 30, 2025, to shareholders recorded by December 15, 2025. This announcement reflects the company’s commitment to providing returns to its investors and maintains its financial strategy by ensuring regular dividend payments. The Depositary Shares are traded on the Nasdaq Capital Market under the symbol ‘MNSBP.’

MainStreet Bancshares Announces Stock Repurchase Program

On November 4, 2025, MainStreet Bancshares, Inc. announced the repurchase of 209,000 shares of its common stock at $18.54 per share under its stock repurchase program. This transaction reduced the company’s outstanding common stock to 7,496,571 shares and left $6.1 million available for future repurchases, reflecting a strategic move to manage its capital structure.

MainStreet Bancshares Announces Cash Dividend for Shareholders

On October 28, 2025, MainStreet Bancshares, Inc. announced a $0.10 per share cash dividend for common shareholders, to be paid on November 18, 2025, with a record date of November 11, 2025. The Board of Directors will review the company’s financial status and other factors before deciding on future dividends, highlighting their discretion in such financial decisions.

MainStreet Bancshares Surpasses Expectations in Q3 2025

On October 27, 2025, MainStreet Bancshares, Inc. announced its third-quarter financial results, reporting a net income of $4.52 million and earnings per share of $0.52, surpassing market expectations. The company’s core net interest margin stood at 3.54%, and it remains well-positioned for future rate changes. The bank continues to see strong lending opportunities in various sectors and maintains strong asset quality. Additionally, the board authorized a new stock repurchase program of up to $10 million, replacing the previous program.

MainStreet Bancshares Announces New Stock Repurchase Program

On October 16, 2025, MainStreet Bancshares, Inc. announced a new stock repurchase program to buy back up to $10 million of its outstanding common stock. This initiative replaces the previous program from May 19, 2022, and will be executed at management’s discretion based on market conditions and other factors, with no guarantee of stock purchase. The program is expected to last 18 months but may be adjusted as needed.

MainStreet Bancshares Announces Upcoming Earnings Call

On October 14, 2025, MainStreet Bancshares, Inc. announced plans to hold a virtual webcast and quarterly earnings conference call on October 27, 2025, to discuss its third-quarter results and recent activities. This announcement indicates the company’s commitment to transparency and engagement with investors, potentially impacting stakeholder confidence and market perception.

MainStreet Bancshares Appoints Wendy Adeler Hall as Director

On September 18, 2025, MainStreet Bancshares, Inc. and MainStreet Bank announced the appointment of Wendy Adeler Hall as a director, effective October 16, 2025, filling the vacancy left by Elizabeth Bennett in 2024. Wendy Adeler Hall, a seasoned leader in the jewelry industry, brings extensive experience in business development, marketing, and philanthropy to the board. Her appointment is expected to enhance the company’s community engagement and business success, as she joins the Nominating and Compensation Committee as an independent director under Nasdaq standards.